Limelight (NSDQ: LLNW), the troubled CDN faced with an ongoing patent infringement lawsuit, reported Q2 revenue of $30.3 million, a 22 percent increase from the year-ago quarter. Losses spiked to $15.3 million from a loss of $10.6 million, although this quarter a large charge for litigation expenses. On a non-GAAP basis, the company’s net loss for the quarter was $1.6 million. At the end of the quarter, the company had 1,292 current customers, compared to last quarter’s 1,232. For the coming quarter, which includes the business its doing for NBCOlympics.com, Limelight predicts revenue of $30-$32 million. It’s not clear how big the Olympics contract is worth and what it would be without that deal.

Conference call: CEO Jeff Lunsford said the venture market for emerging businesses is tightening, but that the company is making progress in diversifying away from startup customers.

More from the call after the jump

He noted penetration in the e-commerce and enterprise space, as well as traditional media customers. Among the recent new wins: CNET (NSDQ: CNET), the aforementioned NBCOlympics.com, Japanese social net Gree, and a major European broadcaster to be named later. Lunsford also noted progress on the legal front — as of the end of the quarter, only 36 percent of the company’s traffic relies on the technology described in the Akamai (NSDQ: AKAM) patent. As for the outlook, the company plans on investing heavily in new infrastructure to support an expected increase in traffic the second half of the year. Beyond that, the company isn’t given earnings guidance.

— Olympics: Yes, the Olympics business is factored into its next quarter outlook. The company hasn’t said, nor did anyone actually ask, what the coming quarter would look like sans the Games.

— IP Growth Rates: Management unclear whether actual IP growth rates are up or down. Previously the company was helped by the law of small numbers (you don’t hear that one too much).

— Pricing: “Historically, we were modeling a 2 percent price decline… it’s probably increased from there, but to specifically quantify it for you…” Lunsford then notes that there are various factors affecting pricing, including larger customers that get cheaper deals.